Week 7 Marketing - Physical availability, retailing, and shopping

Retailing

selling goods/services directly to the final customer.

How stores compete

repeat purchasing patterns that occur in brand buying also occur in store choice.

these patterns hold true for:

• supermarket chains

• department stores

• petrol stations

• fast-food chains

• women’s fashion boutiques

stores compete like brands

when do rival stores compete

rival stores only compete when they are physically near each other.

Double Jeopardy law

stores with good mental and physical availability are visited by more shoppers as they find the brand easier to repeat purchase.

impact of stores location

affects on how many people it attracts

how loyal they will be

which other stores it will compete closely with

Purchase goals (empirical laws of shopping)

goal, often brand in mind from advertising outside of store.

mental and physical availability (empirical laws of shopping)

largely determines store sales

limited time (empirical laws of shopping)

limited time = goal-based shopping

spare time = extra sales

many short trips and fewer long trips (empirical laws of shopping)

many short trips and fewer long trips in supermarkets

selective purchasing (empirical laws of shopping)

shoppers buy between 300-400 of the Stock Keeping Units from a supermarket in a year.

top selling items (empirical laws of shopping)

a typical store sells 30k-50k items, while the top selling 1k items make up about half the sales.

Colours and symbols

consumers barely read in store and react to colours and symbols instead.

since there’s a huge amount to read, it slows shoppers, thus they navigate using coloures and symbols.

eye tracking

customers look at these in order:

picture, brand, description, price, variety, other.

trained shoppers to buy specials (empirical laws of shopping)

people like to save money, time and mental efforts.

a lot of it is simply the visual flag / navigational aid. e.g. “top seller”.

set paths (empirical laws of shopping)

shoppers follow pathways of open space. clutter of lack of light is a big turn off.

screening out

when someone buys, they fail to notice other brands, because they screen out distractions and focus on finding “their brand”.